Suppose a perfectly competitive market is in equilibrium, and then market supply increases. Which of the following would happen?
a. producer surplus would definitely increase and consumer surplus may increase or decrease
b. producer surplus would definitely decrease and consumer surplus may increase or decrease
c. consumer surplus would definitely decrease and producer surplus may increase or decrease
d. consumer surplus would definitely increase and producer surplus may increase or decrease
e. producer and consumer surplus would remain unchanged
D
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All else equal, as the price of a product falls, the quantity supplied increases
Indicate whether the statement is true or false
Something that would cause the long-run aggregate supply curve to shift to the right would be the:
A. unemployment rate decreasing. B. discovery of a new oil reserve. C. inflation rate decreasing. D. The long-run aggregate supply curve is fixed, and does not shift.
You deposit X dollars into a 3–year certificate of deposit that pays 4.75 percent annual interest. At the end of the 3 years you have $4,229.70 . What number of dollars, X, did you deposit?
a. $3,680.00 b. $3,712.77 c. $3,750.00 d. $3,772.57
The ratio at which one country trades a domestic product for imported product is that country's
A. comparative advantage. B. cost ratio. C. terms of trade. D. absolute advantage.